New Construction Loans in Hawaii

From the foundation up, we’re by your side!

Ready to kick off your new construction project? BNB Lending offers fast, flexible financing with 1 to 2-year interest-only terms to help you get the job done efficiently. We provide funding for residential properties (1 to 4 units), multi-family units, condos, apartment complexes, commercial buildings, and hotel construction projects. Our financing covers up to 85% of the purchase price and 100% of vertical construction costs, ensuring your project is ready for rent or sale. Plus, with no prepayment penalties, you can refinance or sell whenever you're ready. Our quick closing process means you can get quoted and funded in as little as 14 days.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

Wondering if you qualify for investment property financing in your area?


We offer lending services in all 50 states!

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Frequently Asked Questions

What are the requirements for getting a construction loan?

To get approved for a construction loan, you’ll need architectural plans, an itemized construction budget, and a licensed general contractor. Most lenders require at least 15% down and a credit score of 660 or higher. Ownership of the land or a signed purchase agreement is usually required. Funds are disbursed in stages based on construction milestones. We also look at your liquidity, the builder’s credentials, and projected comps. A clear plan and exit strategy help speed up approval. These loans are built for builders, real estate investors, and developers ready to move quickly.

How do home construction loans differ from traditional financing options?

Home construction loans provide phased funding, while traditional mortgage loans offer the entire amount upfront. Construction financing disburses funds as each stage of the build is completed—foundation, framing, roofing, etc.—and typically requires only interest payments during construction. This structure helps preserve cash flow during the build. Traditional loans, in contrast, begin full principal and interest repayment immediately and are designed for finished homes. Construction financing also focuses more on the viability of the project and contractor qualifications than just borrower income. It’s ideal for new builds and short-term rentals not yet producing income.

What credit score is needed to qualify for new construction financing?

A credit score of 660 is generally required to qualify for new construction financing. However, other factors like liquidity, builder history, and scope of work also carry weight. If your score is slightly below the threshold, you may still qualify with strong reserves or a well-documented project. These loans rely more on asset quality and execution than on personal income, so documentation is lighter than traditional mortgages. Higher credit scores typically yield better rates and faster closings. Still, many experienced builders and investors qualify based on planning and project value—not just their FICO.

Are construction loans available to small business owners or just individuals?

Construction loans are available to both individuals and business entities. Many borrowers choose to finance their builds through LLCs or corporations, especially when developing investment properties. As long as a qualified principal (usually 20–25% ownership) provides a personal guarantee, your business can secure financing. We also lend to trusts on a case-by-case basis. Documentation focuses on the deal—timeline, builder experience, and comps—rather than W-2s or tax returns. This structure benefits full-time investors and small businesses alike. Our team is experienced in helping self-employed clients move from planning to build quickly and efficiently.

What is the typical loan rate for construction financing?

Typical construction loan rates start around 5.50%, though they can fluctuate depending on the borrower's credit profile, project complexity, and size. Rates are usually interest-only during the construction period, keeping upfront costs manageable. Once the build is complete, borrowers often refinance into a long-term mortgage or DSCR loan. Your final rate will also depend on market conditions, contractor strength, and draw schedule efficiency. We structure each loan to align with your project’s pace and exit plan. With strong documentation and clear milestones, we help ensure your build is funded affordably and on time.

What types of loans are best for new construction projects in Hawaii?

The best loans for new construction projects in Hawaii are interest-only draw loans that support phased development. These programs work well for STRs on Big Island, luxury homes on Maui, or infill projects on Oahu. We finance up to 85% of land acquisition and 100% of vertical construction costs. Hawaii builders often use these loans before refinancing into DSCR or long-term mortgage options once the property is complete. Our structure allows fast closings, minimal red tape, and flexibility tailored to remote builds or tight timelines. It’s the ideal model for investors in Hawaii’s unique real estate market.

Explore new construction loans and other short-term rental loans in neighboring states like California and Alaska to grow beyond Illinois.